The Cooperative Capital Markets Regulatory System is an initiative by the governments of British Columbia, New Brunswick, Ontario, Prince Edward Island, and Saskatchewan (collectively, the “Participating Provinces”), along with the government of Canada, to create the Capital Markets Regulatory Authority (the “CMRA”), a national securities regulator.

On December 5, 2014, it was announced that the Participating Provinces have made significant progress toward preparing draft initial regulations (“Draft Initial Regulations”) for adoption under the proposed draft uniform provincial capital markets legislation (the “Capital Markets Act”).

In an effort to maintain continuity and minimize disruption for market participants, the Draft Initial Regulations will be based on the rules of the Participating Provinces, including the existing national and multilateral instruments. It is intended that any differences will only be those necessary to conform to the Capital Markets Act and to remove variations in requirements among the jurisdictions. The Draft Initial Regulations are not expected to include regulations under the proposed draft uniform federal capital markets legislation (the “Capital Markets Stability Act”). If any regulations under the Capital Markets Stability Act are developed before the CMRA becomes operational, they will be published separately for comment.

The Draft Initial Regulations are expected to be published for comment in early spring 2015.